Android devices have supported tap-to-pay transactions in brick-and-mortar stores for years with Google Wallet, but at the 2015 I/O developer conference, the search giant showed how those transactions will work in the future with Android Pay.

How it Works I was shown a phone running an e-commerce app. A Google representative browsed through the online shop (which sold rubber horse masks and nunchuks), before selecting an item. Where he would normally be prompted to select a credit card, an Android icon indicated that he could use Android Pay. A tap later, the purchase was complete.

It's even easier at a store that accepts NFC transactions. You just tap your Android device against the terminal, and a confirmation screen appears indicating that your transaction was successful. A few seconds later, Google sends you a notification confirming the purchase. In the demo I saw, the Google representative paired a Coca-Cola loyalty card to Android Pay. When he made a purchase from an NFC-enabled vending machine, the loyalty points were automatically added to his account.

While you don't need to open the Android Pay app to make a transaction, the app does have some useful features. All your loyalty cards are visible, along with the credit cards you've added to Android Pay. The app seemed simple and well-designed, though very visually similar to Apple's Passbook app, which also handles loyalty cards and NFC payments through Apple Pay.

Keeping it Secure Credit card fraud is incredibly common. Last year, for example, my credit card number was stolen and used three separate times within two months. But Google has taken great pains to ensure that your credit card information is secure on your Android device. It uses your Android phone as an authentication device, adding a layer of security to each transaction.

Even better, Android takes advantage of an existing technology called virtual credit cards. These are credit card numbers that are generated by banks or payment processors and linked to existing credit cards. When you use a virtual card, you enter the virtual card's number and expiration date and your real card is charged, but without your credit card information being exposed. Apple Pay also uses this system, as does Abine Blur. It's an incredibly simple and effective technology that deserves to be used on a larger scale.

If your phone is lost or stolen, you can simply log in to Android Device Manager and wipe your device. Your Android Pay information will be discarded. As is the case with all fraudulent charges, your credit card issuer will handle them with no charge to you.

If you have an NFC-enabled Android phone running KitKat or higher, you'll be able to use Android Pay when it becomes available. As of this writing, there is no fixed release date, though I was told I could expect Android Pay to be available in the coming months.

What About Google Wallet? I asked the Google representative who gave me the demo what differentiated Android Pay from Google Wallet. Wallet, after all, is well-established and supports NFC payments as well as in-app purchases. In fact, if you were to make a purchase in Google Play from within an app or from the store itself, it would be handled by Google Wallet.

The answer is, apparently, ease of use. Google Wallet has a host of other functionality beyond tap to pay and in-app purchases. Google's representative told me that some people love Google Wallet because they can use it to pay rent, carry a balance, or easily send money online.

Android Pay won't do those things, but I was told that it will become the default option for in-app payments and purchases made in the Google Play store. The goal is to streamline those specific operations without removing or further interfering with the Wallet features that consumers use.

Android Pay is also intended to be easier for developers to use. Google Wallet requires app developers to create accounts and register their apps as merchants. Android Pay requires no signup; a developer needs only put in a call to the Android Pay API in order to process payments. Simple.

Will You Use It? With Android Pay on track to become the default payment service for the Play store and in-app purchases, Android users are definitely going to become familiar with the tool. And by supporting devices from KitKat on, it stands a pretty good chance of actually getting into users' hands.

NFC transactions are another story. During my demo, Google's representative mentioned that there were over 700,000 tap-to-pay machines in the world. That's a big number, but it's nothing compared to number of places you can pay for things with a credit card. But that might be changing, too.

In October 2015, card issuers will switch over to EMV cards, sometimes called chip-and-PIN cards though the distinction is more subtle. Merchants, in turn, will be pressured to purchase new point-of-sale devices that can handle EMV transactions. That means a lot of merchants will have the opportunity to also get POS terminals that support NFC transactions. While you might not use Android Pay tomorrow, or even next week, it's certain that you will at least have the chance to in the very near future.

About the Author

Max Eddy is a Software Analyst, taking a critical eye to Android apps and security services. He's also PCMag's foremost authority on weather stations and digital scrapbooking software. When not polishing his tinfoil hat or plumbing the depths of the Dark Web, he can be found working to discern the 100 Best Android Apps.
Prior to PCMag, Max wrote... See Full Bio

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